(Bloomberg) — Paris wheat futures advanced on Friday as major producing nations reported slow harvests and dwindling production.
Harvesting in France is at the slowest since 2021, according to FranceAgrimer data, with wet weather delaying operations and impacting crop quality. German crop output is expected to fall below the 42 million tons previously anticipated.
Spreads between European and benchmark Chicago prices have widened in recent months, hovering near an eight-month high. While the US has seen good growing conditions this year, western Europe has faced a deluge of rain, while unseasonable droughts have hit eastern Europe and massive grain producer Russia.
Paris wheat futures gained as much as 2.6% on Friday, while wheat in Chicago whipsawed.
The European market is trying to balance signs of shrinking supply against a lack of competitiveness against Black Sea crops, analysts at Argus said.
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